halifax overpayment question

antoniomontana

im currently on a fixed rate deal with halifax of 6% but that will reduce to 3.5% (SVR) after 31/8/09 when my deal ends.
I would like to make a one off overpayment of about £8000 (within my current 10% limit) but will more of the capital be paid off if I wait till the fixed rate deal ends and I go onto the SVR (i.e. after 31/8/09) and also does it matter what time of the month I pay that amount (I read somewhere paying at the beginning of the month is best)?

opinions4u

Interest is calculated daily, so timing isn't important.

The payment comes off the capital immediately and your monthly payment will usually reduce from the following calendar month (unless you pay very late in the current month).

In other words, do it sooner rather than later!

Comyface

Agree with opinions4u.

Just to add when you said you'd read that paying at the beginning of the month is best, you might have read that paying your monthly payment at the beginning of the month is best.

This is because the interest is calculated daily but capitalised at the end of the month, so the earlier in the month you pay the longer you're being charged interest on the lower amount.